Maybe the dream of every online store owner is to have fast, dependable shipping to Brazil.
In just a few short years, Brazil has emerged as one of the world’s most dynamic e-commerce markets.
In a world where e-commerce is booming, an increasing number of Brazilians are opting to do their shopping from the comfort of their own homes. Evidence from a wide range of categories, including electronics, clothing, and security tools, shows that both sexes make purchases, though women tend to spend more.
Online retail sales in South America reached nearly $15 billion in 2018, with Brazil accounting for nearly 40% of the region’s total. By 2022, it’s estimated that 130 million Americans will shop online.
These numbers make Brazil’s eCommerce market a tantalizing one for industry heavyweights like Amazon, eBay, and Alibaba, but smaller online merchants can get a piece of the action as well.
In the past, unreliable and slow postal services prevented some smaller online retailers from entering this market. However, in 2020, things are changing and gradually eCommerce owners are opening up to this market.
Is Brazil a market you hope to soon begin serving? Please read on to find out the guidelines you must adhere to in order to avoid any problems.
Shipping to Brazil: what has changed
As we’ve already established, Brazil’s shipping services have vastly improved over the past few years. Nonetheless, the Government also introduced new regulations for all international orders and shipments alongside the improvement of the postal service.
The Brazilian Post and Telegraph Corporation (Correios) announced in December 2019 that the Brazilian Internal Revenue Service will no longer accept packages after January 1, 2020, unless the Tax ID number of the recipient is included on the customs declaration and shipping labels. The package will be returned to the sender or destroyed by Brazilian Customs if the Tax ID for the intended recipient is not included.
Customs clearance cannot begin until either the individual’s Tax Identification Number (CPF) or the legal entity’s Tax Identification Number (CNPJ) is attached to the package.
Shipping to Brazil: when you receive an order on your store
Even though the new regulations are somewhat complicated to follow, you should have no trouble arranging the shipping to Brazil so long as you have all the information you require. Simply put, if the return is not possible, your packages will be destroyed by the authorities if they are stopped at customs because you failed to provide the requested information.
This is why having customers enter their Tax ID number at the time of purchase is crucial.
The correct format for a taxpayer identification number is the following: three sets of three numbers, separated by a period and a dash, and then two more numbers, as shown below:
REPORT AS: 000.000.000-00
Such as: 123.456.789-10
Since we are discussing tax IDs for businesses, the format will vary depending on whether or not your client is a person or a corporation. These IDs should begin with a string of 9 numbers, broken up into 3 groups of 3, separated by periods (. ), then continue with a forward dash (/) and 4 numbers, and end with a dash (-) and 2 numbers.
Take the following IP address as an example: 123.456.789/10:11:12
Drop shipping to Brazil
Owning an online store and fulfilling orders on your own can be time-consuming and costly due to the need for a warehouse and the associated shipping logistics.
There is no assurance that your products will sell in time, and you may be stuck with an overstocked warehouse if they don’t. That’s why more and more eCommerce platforms support dropshipping now.
If you decide to use a dropshipping service to fulfill orders, all you’ll need to do is pick your products and set up your advertising. Your supplier will be responsible for all other logistics. However, even then, you may find that it takes a lot of time to import products to your website and communicate order details to your suppliers on a daily basis.